Betsy Wall, Executive Director

FOCUS ON CHINA

Friday, December 14 th Hall of Flags, State House Boston, MA

PROGRAM OF EVENTS 10 – 11am 11– 11:45am Overview of China Visitation Data & Visitor Profiles Overview of the Chinese Leisure Market & the Tour Industry in China 11.45 – 12.30pm Lunch break 12.30– 1.30pm

The Chinese International Student in Massachusetts – A Primer 1:30– 2:30pm 2: 30 – 3pm Panel of Experts - Understanding the Marketplace Q & A

 US-China Group Leisure Travel Memorandum of Understanding (MOU) signed December 11, 2007  US Travel Destinations are allowed to market their brands in China  Increase in number of Chinese tourists to the US  Chinese travelers will become more familiar with different US destinations



China inbound tourism to the US is the fastest growing tourism source to the USA and will continue to be so for the foreseeable future.

 US Government granted Chinese visitors ‘ Approved Destination Status ’ (ADS) visas  Stated Goal of the U.S. Dept of State “ Increase non immigrant visa processing capacity in China and Brazil by 40 per cent in the coming year ’  Recognition of Obama Administration to both protect US borders but nurture international visitation

What Are The Facts?

International Traveler Spending

from United Nations World Tourism Organization OUTBOUND!

Top Origin Markets for International Travelers to the U.S.

Origin of Visitor 2011

(000s)

2011/2010

(% change)

12/11 May YTD

(% change) 3 4 5 6 7 8

9

10

International Total *

1 2 Canada Mexico

Overseas **

United Kingdom Japan Germany Brazil France South Korea

China (PRC)

Australia * **

62,711

21,337 13,491

27,883

3,835 3,250 1,824 1,508 1,504 1,145

1,089

1,039 International travelers include all countries generating visitors to the U.S.

Overseas includes all countries except Canada and Mexico.

5%

7% 0%

6%

-0% -4% 6% 26% 12% 3%

36%

15%

6%

4% 5%

9%

-2 % 14% 12% 19% 5% 12%

42%

6% Record year for travel to U.S.

Top Travel Export Markets

($billions of 2011 receipts)

Origin Country

Canada Japan United Kingdom Mexico Brazil

China

Germany Australia France India South Korea

U.S. TOTAL Travel Receipts 2011r

$19.4

$10.1

$9.0

$6.4

$5.9

$5.7

$4.9

$4.3

$3.8

$3.1

$3.7

$116.1

Passenger Fare Receipts

$4.6

$4.6

$3.0

$2.8

$2.6

$2.1

$1.4

$0.7

$1.2

$1.3

$0.1

$36.6

Total Travel Receipts 2011

$24.0 $14.8

$12.0

$9.2

$8.5

$7.7

$6.3

$5.0

$5.0

$4.4

$3.8

$152.7

r = revised

Chinese Visitors & Spending

(1997 – 2011, current $ ’ s) In 2011 visitor volume was a record 1.09 million, while spending was a record $7.74 billion. visitors (000s) spending ($billions)

1200 1000 800 Visitors

(lhs)

600 400 200 Spending

(rhs)

0 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Sources: Department of Commerce, Office of Tourism Industries; Department of Commerce, Bureau of Economic Analysis

11 $6 $4 $2 $0 $12 $10 $8

Chinese Traveler Superlatives

Since 2007 (1st new record among current string of records)  Including 2007, five consecutive visitor volume records—one of the longest record strings;  Highest visitor volume growth

rate

—by far—among top 40 origin markets (174% vs. 136% for Brazil);  3 rd -highest visitor growth

volume

among all countries (700k vs Canada ’ s 3.6m and Brazil ’ s 900k);  Highest visitor spending growth

rate

(187%) vs Brazil (170%);  3 rd -highest growth spending

volume

Canada ’ s $7.6b and Brazil ’ s $5.3b); among all countries ($5b vs

Chinese Visitors

’

Ports of Entry Top U.S.

5

#5 Blaine, WA 74k (6.8%) #2 San Francisco (SFO) 166k (15.2%)

2 1

#1 Los Angeles (LAX) 201k (18.5%) #3 Chicago (ORD) 129k (11.8%)

3

#4 New York (JFK) 119k (10.9%)

4 6

#6 Newark (EWR) 58k (5.4%)

Top Cities

Cities Visited

New York City Los Angeles DC Metro Area San Francisco Las Vegas Boston Chicago Buffalo Seattle Atlanta Philadelphia Detroit San Jose

2005 2006 2007 2008 2009 2010 2011

31 % 31 % 15 % 26 % 22 % 7 % 16 % 1 % 4 % 2 % 2 % 1 % 6 % 27 % 39 % 13 % 24 % 23 % 8 % 11 % 2 % 6 % 2 % 3 % 3 % 6 % 31 % 37 % 17 % 24 % 18 % 8 % 13 % 2 % 3 % 2 % 5 % 1 % 4 % 35 % 31 % 18 % 22 % 17 % 8 % 11 % 5 % 2 % 4 % 6 % 1 % 4 % 29 % 30 % 17 % 22 % 17 % 9 % 11 % 1 % 5 % 3 % 3 % 0 % 2 % 28 % 34 % 14 % 22 % 16 % 9 % 10 % 1 % 4 % 2 % 4 % 2 % 1 % 39 % 31 % 20 % 18 % 16 % 12 % 8 % 6 % 5 % 4 % 4 % 4 % 4 %

Key Activities

Activities 2005 2006 2007 2008 2009 2010 2011

1 Shopping 2 Dining in Restaurants 3 Sightseeing in Cities 4 Visit Historical Places 5 Amusement/Theme Parks 6 Visit National Parks 7 Cultural Heritage Sites 8 Art Gallery/Museum 9 Casinos/Gambling 10 Visit Small Towns 11 Guided Tours 12 Touring Countryside 13 Cruises 89 % 83 % 49 % 42 % 31 % 28 % 21 % 24 % 24 % 24 % 8 % 23 % 8 % 90 % 82 % 53 % 45 % 25 % 25 % 24 % 18 % 29 % 23 % 12 % 16 % 8 % 88 % 80 % 51 % 47 % 28 % 29 % 21 % 19 % 22 % 22 % 13 % 18 % 8 % 90 % 84 % 45 % 43 % 28 % 23 % 25 % 22 % 21 % 19 % 14 % 15 % 14 % 92 % 83 % 57 % 43 % 27 % 27 % 29 % 24 % 18 % 22 % 15 % 13 % 10 % 94 % 83 % 48 % 45 % 33 % 24 % 23 % 19 % 19 % 23 % 17 % 14 % 9 % 87 % 78 % 54 % 53 % 36 % 29 % 28 % 25 % 24 % 23 % 20 % 16 % 15 %

Activities, continued…

Activities

14 Water Sports/Sunbathing 15 Concert/Play/Musical 16 Nightclubs/Dancing 17 Environ./Eco. Excursions 18 Camping/Hiking 19 Visit Am. Indian Comm.

20 Attend Sports Event 21 Ethnic Heritage Sites 22 Golfing/Tennis 23 Ranch Vacations 24 Snow Skiing 25 Hunting/Fishing

2005 2006 2007 2008 2009 2010 2011

11 % 10 % 6 % 6 % 2 % 2 % 8 % 4 % 7 % 1 % 1 % 3 % 8 % 11 % 12 % 5 % 3 % 2 % 5 % 4 % 5 % 2 % 2 % 2 % 5 % 10 % 8 % 4 % 5 % 5 % 6 % 5 % 6 % 3 % 1 % 2 % 14 % 9 % 4 % 4 % 4 % 4 % 4 % 3 % 6 % 4 % 2 % 1 % 12 % 12 % 11 % 8 % 7 % 4 % 3 % 9 % 6 % 3 % 2 % 3 % 9 % 8 % 6 % 4 % 4 % 3 % 7 % 5 % 4 % 4 % 2 % 4 % 12 % 10 % 8 % 8 % 6 % 6 % 6 % 5 % 4 % 4 % 3 % 3 %

International Visitors to the U.S. and Projections

(2000-2016)

100 Arrivals in Millions 80 60

51.2

46.9

43.6

41.2

46.1

49.2

51.0

56.0

57.9

55.0

59.8

62.3

65.4

68.3

71.1

73.8

76.6

40 20 0

2000 Sources: 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(f) 2013(f) 2014(f) 2015(f) 2016(f) U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Secretaria de Turismo (Mexico); Statistics Canada. -- April 2012 forecast

OTTI Travel Forecast Inbound Travel to the U.S. from Asia

7,247

3,250 1,145 1,145 663 663 290 290 1,233

1,474

- - - - -

Source: OTTI - April 2012 forecast

3 % 8 % 7 %

26 % 21 %

6 % 6 % 4 %

Forecast for Chinese Visitation to the U.S.

What does this mean for MA?

Chinese MA Numbers



Visitation to MA: 139,000 visitors



Est. Visitor Spending: $285 million



State & Local Taxes: $18 million

 Massachusetts prestigious academic institutions are critical to the image of the state in China  Prep Schools  Undergraduate courses  Postgraduate courses  Executive Training  Business Investment

MOTT Moving Forward in China  Capitalize on Brand USA partnership as they develop marketing strategy for China  Strengthen relationships with Chinese receptive operators and tour operators  Coordinate MA presence at key China trade shows  Host press trips and trade familiarization trips  Invest in social media & promotional presence

International Marketing Program

Questions?

Betsy Larkin Senior Manager, International Marketing Massachusetts Office of Travel & Tourism [email protected]